SoFi Stock Falls After BofA Downgrade Over Valuation Concerns: Here’s What Technical Analysis Shows
SoFi Technologies Inc. (NASDAQ:SOFI) stock closed 2.81% lower at $15.57 apiece on Monday and fell further by 0.5% in premarket trading on Tuesday. This comes after Bank of America Securities downgraded the scrip due to valuation concerns.
However, technical analysis based on the simple moving averages points to a different story for the stock.
What Happened: BofA Securities downgraded the company from “Neutral” to “Underperform” with a price target of $12 per share.
Shares of SoFi rose 61.35% on a year-to-date basis, whereas it advanced 121.48% in the last six months, outperforming the Nasdaq Composite which gained 33.66% and 14.8% in the same period, respectively.
“After the rally, we believe valuation is ahead of fundamentals and SoFi is priced to perfection,” the BofA note said. SoFi’s shares are trading at 20 times its 2026 earnings per share target, which is at a premium to its peers, as per the note. “At this valuation, we view risk-reward less favorably,” it added.
Meanwhile, Jefferies on …
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